Could it be..... - Posted by Eric Smith

Posted by JPiper on June 10, 2000 at 14:25:50:

You could do it that way…have the seller reimburse if the appraisal doesn’t come in at a specified dollar figure. Of course then if the seller doesn’t pay, you would have to sue.

You could also have the seller pay, and you agree to reimburse if the appraisal is a specified figure. That way, if it doesn’t come in, you don’t have to chase the seller for the money.

But the other factor is that you should KNOW, based on the comps that you have run, what the value of the property is, and roughly how the appraisal will come in. When you say “I can get the house for well under what I was told the appraised value would be.”, it sounds like you’re relying on someone else for value…always a poor idea. If YOU don’t know the value of what you’re buying or contracting for…this is going to be a mighty tough business.


Could it be… - Posted by Eric Smith

Posted by Eric Smith on June 09, 2000 at 15:53:28:

First deal appears to be in the works. There is only one snag.

I can get the house for well under what I was told the appraised value would be. I’ll then sell it with seller financing and flip the note at a simultaneous close. This is all set up, however it all depends on the appraisal.

I don’t want to risk the money on an appraisal if it ends up way too low. After all, if I did that on every house that was too low I would easily eat up all my profit. So, I’d like to get the seller to re-imburse me if the appraisal is too low. Is this workable? Can I put it in the contract, or will their lawyer flip?